This article discusses McKinley Capital Management’s top 5 stock picks at the end of the second quarter of 2022. If you want to know about the fund’s history, its investment strategy, and recent performance, please also read Top 10 Stock Picks of Robert B. Gillam’s McKinley Capital Management.
05. Danaher Corporation (NYSE:DHR)
McKinley Capital Management’s Stake Value: $20.129 million
Percentage of McKinley Capital Management’s 13F Portfolio: 2.62%
Number of Hedge Fund Holders as of Q1 2022: 83
The Danaher Corporation (NYSE:DHR) develops, produces, and markets professional, medical, industrial, and commercial goods and services internationally. Life Sciences, Diagnostics, and Environmental & Applied Solutions make up the company’s three operating segments.
For Q2 2022, Danaher Corporation (NYSE:DHR) had EPS valued at $2.76, beating estimates by $0.42. It has consistently beaten the earnings forecast for the past four quarters. The company has posted a revenue figure of $7.75 billion, beating estimates by $461.77 million and reflecting year-over-year growth of 7.4%. In the first half of 2022, Danaher Corporation (NYSE:DHR) distributed $411 million in dividends to its shareholders, an increase of 14.2% from the prior year. The stake of McKinley Capital in Danaher Corporation (NYSE:DHR) declined by 12% during the second quarter.
04. Alphabet Inc. (NASDAQ:GOOG)
McKinley Capital Management’s Stake Value: $21.811 million
Percentage of McKinley Capital Management’s 13F Portfolio: 2.84%
Number of Hedge Fund Holders as of Q1 2022: 365
For Q2 2022, Alphabet Inc. (NASDAQ:GOOG) had EPS valued at $1.21, missing estimates by $0.08, and reported actual revenue valued at $69.69 billion, missing estimates by $111.87 million. The stake of McKinley Capital in Alphabet Inc. (NASDAQ:GOOG) declined by 9% during the second quarter.
In its Q2 2022 investor letter, Wedgewood Partners mentioned Alphabet Inc. (NASDAQ:GOOG) and explained its insights for the company. Here is what the fund said:
“Alphabet grew its core search revenues +24% on a +30% year-ago comparison. Despite this stellar top-line performance, shares sold off as the market began to discount fears of a recession. However, the stock has outperformed relative to other holdings as core Google Search has been less affected by disruptions related to Apple’s privacy initiatives. Alphabet’s Cloud segment is generating revenue at a $24 billion run rate but is still running at a loss. We think this business can generate much better margins at some point. In the meantime, the Company has 4% to 5% of shares authorized for repurchase which is an attractive use of capital as the stock trades for about just 18X 2023 consensus estimates.”
03. Apple Inc. (NASDAQ:AAPL)
McKinley Capital Management’s Stake Value: $33.699 million
Percentage of McKinley Capital Management’s 13F Portfolio: 4.4%
Number of Hedge Fund Holders as of Q1 2022: 131
Apple Inc. (NASDAQ:AAPL) is rated as a Strong Buy based on 27 analysts offering recommendations in the last 3 months. For Q2 2022, Apple Inc. (NASDAQ:AAPL) had EPS valued at $1.2, beating estimates by $0.04, and brought in revenue valued at $82.96 billion, missing estimates by $9.43 million.
In its Q2 2022 investor letter, Wedgewood Partners mentioned Apple Inc. (NASDAQ:AAPL) and explained its insights for the company. Here is what the fund said:
“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.
02. UnitedHealth Group Incorporated (NYSE:UNH)
McKinley Capital Management’s Stake Value: $42.526 million
Percentage of McKinley Capital Management’s 13F Portfolio: 5.55%
Number of Hedge Fund Holders as of Q1 2022: 103
For Q2 2022, UnitedHealth Group Incorporated (NYSE:UNH) had EPS valued at $5.57, beating estimates by $0.37. The stock has beaten the earnings forecast for the consecutive fourth quarter. For the second quarter, the company reported actual revenue valued at $80.33 billion, surpassing estimates by $748 million.
McKinley Capital upped its stake in the diversified healthcare company UnitedHealth Group Incorporated (NYSE:UNH) by 3% during the second quarter, holding 0.828 million shares valuing $42.526 million, representing 5.55% of the portfolio.
01. Microsoft Corporation (NASDAQ:MSFT)
McKinley Capital Management’s Stake Value: $43.284 million
Percentage of McKinley Capital Management’s 13F Portfolio: 5.65%
Number of Hedge Fund Holders as of Q1 2022: 259
Microsoft Corporation (NASDAQ:MSFT) has returned 304% over the last five years and is probably poised to be a strong leading growth stock in the years to come.
McKinley Capital Management’s stake in Microsoft Corporation (NASDAQ:MSFT) declined by 9% during the second quarter.
In its Q1 2022 investor letter, Carillon Clarivest Capital Appreciation Fund mentioned Microsoft Corporation (NASDAQ:MSFT) and explained its insights for the company. Here is what the fund said:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
You can also take a peek at Donald Yacktman’s Latest Portfolio: Top 10 Stock Picks and Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks
